Fraud is skyrocketing as states shift from issuing paper-based food stamps to plastic, electronic benefits transfer cards preloaded with a monthly limit of cash intended only for food purchases.

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Fraud is skyrocketing as states shift from issuing paper-based food stamps to plastic, electronic benefits transfer cards preloaded with a monthly limit of cash intended only for food purchases.

Examples of fraud prompted Congress to take action, with President Obama signing a law[2] in February intended to prevent EBT cardholders from spending their money on tattoos and at strip clubs, liquor stores and casinos.

Here’s a state-by-state listing of some EBT fraud stories:

Alabama: Not fraudulent, but are EBT cards becoming a status symbol? In Alabama, a place called the “Rose Supper Club” gives you $5 off the cover price if you show your EBT card. It’s a promotion called “Food Stamp Fridays[3].”